The outcome of Canada’s federal election has cast a long shadow over the country’s growing crypto industry. With Mark Carney’s Liberal government in power, many fear a chilly regulatory climate will continue — or worsen.
A Tale of Two Parties: Crypto’s Political Divide
The Conservative Party, under Pierre Poilievre, strongly advocated for embracing digital currencies to counter inflation and reduce reliance on traditional banks. They introduced legislation aimed at simplifying regulation and unlocking blockchain innovation.
But the Liberal government remained unconvinced. Chrystia Freeland, then-Finance Minister, blasted the Conservatives for encouraging citizens to invest in crypto right before the market crashed. Prime Minister Carney, known for his trust in central banks, prefers central bank digital currencies (CBDCs) over decentralized assets.
Carney has argued that Bitcoin is too slow and unstable to function as real money, and his administration favors a tightly regulated system that mirrors Europe’s digital finance model.
National Security, Trump, and Crypto Policy
Ironically, crypto policy took a backseat in the election discourse. Donald Trump’s comments about annexing Canada galvanized older voters who supported the Liberals to protect national sovereignty. Meanwhile, younger Canadians gravitated toward Poilievre’s promises of economic modernization and financial freedom through crypto.
Other political dynamics played a role as well: the Green Party withheld many candidates to prevent vote-splitting with Liberals, and the Conservatives performed poorly in Quebec — a pivotal region.
Where Does This Leave Canadian Crypto?
The crypto industry in Canada is now bracing for four years of regulatory resistance. Despite global momentum behind stablecoins and decentralized finance, the Liberal government appears more inclined to expand the central banking model than embrace open blockchain systems.
Unless the political tide turns or bipartisan crypto reform gains traction, Canada may fall behind in the global race to shape the future of digital finance.
